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    derenda's Avatar
    derenda Posts: 24, Reputation: -2
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    #1

    Jan 28, 2009, 12:15 PM
    Preparing adjusted entries
    The company has abank loan and has incurred (but not recorded) interest expense of $2,5000 for the year ended December 31, 2008. The company must pay the interest on January 2, 2008
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jan 28, 2009, 01:13 PM

    The journal entry will be:
    Debit Interest expense for the amount
    Credit Interest Payable for the amount

    The journal entry to recod the payment will be:
    Debit Interest Payable for the amount
    Credit Cash for the amount
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